Jun. 25, 2014
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President Obama and Vladimir Putin / Saul Loeb, AFP/Getty Images

by David Jackson, USA TODAY

by David Jackson, USA TODAY

As the Obama administration threatens Russia with new sanctions, some business groups are pushing back on the idea.

The U.S. Chamber of Commerce and National Association of Manufacturers are preparing a newspaper ad saying that potential sanctions on Russian energy, defense and financial sectors might hurt U.S. businesses and workers.

"We are concerned about actions that would harm American manufacturers and cost American jobs," says Jay Timmons, president and CEO of the National Association of Manufacturers, in the ad.

"The most effective long-term solution to increase America's global influence is to strengthen our ability to provide goods and services to the world through pro-trade policies and multilateral diplomacy," Timmons says.

Some European business groups have raised similar concerns.

The United States and allies have threatened new sanctions on Russia if it continues supporting separatists who have engaged in violence in eastern and southern Ukraine.

Government officials are hopeful that new sanctions will not be necessary and that Russia will conduct peace talks with Ukraine.

Linda Dempsey, vice president of international economic affairs with with the National Association of Manufacturers, said members are particularly concerned about the prospect of unilateral sanctions imposed only by the U.S.

Unilateral sanctions would not deter Russia, but instead "single out U.S. industries and workers" and put them at a disadvantage to foreign competitors, she said.

White House spokesman Josh Earnest said the president is mindful of the impact new sanctions might have on American businesses. That's a major reason that the United States is working with allies -- including major Russian trading partners -- on a package of international penalties, should they become necessary.

"We're balancing a lot of different equities as we approach this," Earnest said.

For his part, Russian President Vladimir Putin pledged support for new talks during a phone call with Obama on Monday, the Kremlin said.

According to a White House readout of that call, Obama "emphasized that words must be accompanied by actions and that the United States remains prepared to impose additional sanctions should circumstances warrant, in coordination with our allies and partners."

In a Tuesday call, Obama and British Prime Minister David Cameron agreed that if Putin fails to take steps "to de-escalate the situation in eastern Ukraine, the United States and the European Union would work to implement additional coordinated measures to impose costs on Russia," the White House said.

The United States and allies have imposed previous sanctions on Russian individuals and businesses; a new set would target major sectors of the Russian economy, including energy and finance.

European Union officials - some of whom have also expressed concern about how new sanctions could hurt their economies - are scheduled to discuss Russia and Ukraine later this week.

The ad from the National Association of Manufacturers and the U.S. Chamber of Commerce targets "unilateral" sanctions, but the United States says it wants to act in concert with allies.

In the ad, U.S. Chamber of Commerce President Thomas Donohue says that "history shows that unilateral sanctions don't work. ... The only effect of such sanctions is to bar U.S. companies from foreign markets and cede business opportunities to firms from other countries."

Meanwhile, the situation in Ukraine has been fluid.

The Russian parliament did, at Putin's request, rescind a resolution authorizing possible military force in Ukraine. Putin has also called for extension of a cease-fire, and talks between Ukraine's government and pro-Russian separatists.

But shortly after Putin's cease-fire call, separatists shot down a Ukraine military helicopter, killing nine people.